Bitcoin’s bull cycle has amassed global media attention. Since 2020 it has increased by over 224% and climbed over $60,000 in March 2021. Naturally, previous investors that have held onto Bitcoin managed to earn huge ROI.
As the hype around Bitcoin was growing, so was the number of investors. However, Bitcoin is still a volatile, decentralized cryptocurrency, and even though it has had huge support, some investors are still on the fence, trying to decide whether they should invest in BTC. In this article, we cover the main reason why Bitcoin is a good investment, especially due to its last bull market phase.
Bitcoin Price Predictions
Bitcoin’s rally was somewhat expected because, based on the historical data, each halving has been followed by a bull market phase. However, no one could have been even remotely sure that the price of Bitcoin will exceed $60,000, and the market cap of the cryptocurrency will be approaching $1 trillion.
Since the bull market phase is still not showing any signs of slowing down, there are even more great predictions regarding its value. So, this is another reason why you could consider investing in BTC. Plus, based on the past data, the price has never fallen back on a previous position after a halving.
According to the pattern of Bitcoin’s price so far, we expect a price of $100,000 by the end of this year. Based on other, not so optimistic predictions, the price could hit $95,000 by the end of 2022. Otherwise, according to the stock-to-flow model of Pantera Captial, a reputable crypto trust fund, it expects the threshold of $100,000 to be surpassed by the end of the summer of 2021. Either way, it is pretty clear that the predictions revolve around a price of $100,000 in a period of 2 years.
So, there are definitely a lot of optimistic estimates regarding the future of BTC. Another factor that impacts the rise of the price is the digital scarcity or restricted supply of 21 million Bitcoins, which means that as the years go by, the BTC supply is only declining.
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Highly Liquid Asset
Bitcoin is a highly liquid asset because you can register on online trading sites and change your position within minutes. There are plenty of options available, and you can instantly change your position from buying, selling, or exchanging BTC other currencies.
Moreover, automated trading sites like Bitcoin Billionaire apply Artificial Intelligence technology to help you potentially earn huge returns based on Bitcoin’s price volatility. Actually, you can potentially make a daily earning of up to 70%. In addition, for your convenience, the platform is mobile-friendly, and you can access your funds on the go.
What Drives the Bull Run
The bull run is fuelled not just by the decreasing supply, but also by the surging demand of institutional investors like crypto trust funds that are investing much larger sums of money in BTC, thanks to numerous accredited institutional investors.
Moreover, businesses across the world are opening up to BTC payments because they also want to support the mass adoption of BTC and leverage the rising price of Bitcoin. This is one of the reasons why the market has matured, and the demand for BTC is surpassing its supply. All of these factors are contributing to the bull market phase.
In conclusion, Bitcoin is a valuable asset that is scarce. Its value will probably continue to grow as the supply is diminishing, especially with each halving. However, this is still a very personal decision. You need to make a budget, review your finances and financial goals before making any investment plans. Also, always keep in mind that this is a decentralized and volatile cryptocurrency, which is why you should take the time to do your research and keep up with the latest news in this area.